BREAKING: A condominium association in Parker, Colorado has declared bankruptcy following a staggering $1.4 million court verdict linked to hazardous mold conditions that plagued a resident’s home. The verdict, issued by Judge Robert Lung, deems the situation a “dangerous nightmare” for the affected homeowner, Kristina Corcoran, who has suffered severe health issues due to mold exposure.
The Highlands at Stonegate North Condominium Association has been thrust into financial turmoil after being ordered to compensate Corcoran for the distress and health damage she endured. Judge Lung’s ruling highlighted that Corcoran’s once-beloved home, purchased in 2015, had turned into an uninhabitable space due to unaddressed water intrusion and mold growth, making it impossible for her to live there safely.
Corcoran, now 55, reported that her health has severely declined, attributing symptoms like blurry vision and chronic pain to mold exposure. “While Ms. Corcoran knows the danger of staying in the residence, she cannot move out due to financial constraints,” Judge Lung noted in the verdict. The situation escalated after Corcoran’s numerous complaints were ignored by the HOA, leading her to file a lawsuit in 2022.
In November 2023, as Corcoran began garnishing the HOA’s bank accounts, the association sought protection under Chapter 11 bankruptcy to preserve its funds for the remaining residents. The HOA’s president, Sherri Rosselot, stated that approximately $1.2 million of their funds are currently frozen due to these garnishment efforts.
The board’s inability to manage this crisis has sparked outrage among residents. “Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community,” said resident Meredith Norton. Homeowners are demanding accountability for what they describe as a failure to address serious construction defects and provide adequate maintenance.
The financial fallout doesn’t end with the jury’s award; the HOA anticipates additional legal fees exceeding $300,000 for Corcoran’s attorneys, Michael Curry and Theodore Wells. This total far exceeds the available funds, placing the future operations of the community at risk.
Residents are now concerned about the long-term implications of this bankruptcy on their property values and living conditions. “It appears the HOA and management company feel like they are in absolute control and get to make terrible decisions that negatively affect homeowners,” said resident Michener, who anticipates that the board will soon undergo significant changes.
As this developing situation unfolds, residents are urged to stay informed about their rights and the HOA’s actions. The community remains on edge as they await further updates on the financial recovery process and any changes to board leadership.
For immediate updates on this urgent situation, residents and concerned parties are encouraged to monitor local news outlets and community boards.
